Finance minister Enoch Godongwana on Thursday delivered the medium-term budget policy statement, with a focus on growing the country's economy.
Madam speaker, the facilitation of trade across our borders is an important enabler of economic activity, especially as we are implementing the African Continental Free Trade Agreement.
It is estimated that the economic cost of the inefficiencies at Beitbridge, just to South Africa, amount to several billions of rand per year. We spent more than we were receiving in tax revenues on a consistent basis. This, together with the composition of spending, did not meaningfully increase growth.
Revenue for 2021/22 is now estimated to reach R1.5-trillion, compared to R1.4-trillion at the time of the 2021 Budget in February. This is an upward revision of R120.3bn. We should not make permanent spending commitments from short-term revenue benefits. This approach is embedded in our fiscal framework.
To strengthen the fight against crime, we have allocated additional funding to the South African National Defence Force and the police services.Madam speaker, this MTBPS is also about continuing our country’s response to Covid-19 and its resultant economic and social impacts, by providing additional short-term support where needed.
Government recognises that we need more private sector jobs, driven by a strong and growing investment climate.Accordingly, the 2022 Budget will allocate almost R74bn towards public employment programmes over the MTEF. Government will also maintain its commitment to supporting fee-free higher education. In this regard, funding for fee-free higher education and training has been increased.
At the same time, the number of people working has declined, further underlining the critical flaws in our economy. Details on our interventions with regards to the social security net will be provided in the February 2022 Budget. Going forward, the restructuring of state-owned companies, informed by an assessment of their strategic relevance, is a priority.
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